Sidian Bank, a mid-tier commercial bank in Kenya, has undergone significant transformations in its ownership structure since its inception in 1984.
Originally founded as K-Rep Bank by Kimanthi Mutua under the Kenya Rural Enterprise Program (K-Rep), the institution started as a project to support small and micro-enterprises.
Over the decades, it has evolved into a full-fledged financial services provider, with its ownership reflecting a mix of local and international interests and strategic acquisition.
Early years
Sidian Bank traces its roots to the K-Rep Group, an investment vehicle established in 1984 to foster the growth of small and micro-enterprises through NGO-managed programs.
By 1987, it had incorporated as a local NGO, and in 1989, it shifted focus to directly advancing loans to NGOs, laying the groundwork for its microcredit lending program.
This became the cornerstone of its operations, eventually leading to its licensing as a commercial bank in 1999 under the name K-Rep Bank.
Centum’s majority stake and rebranding
A pivotal moment in Sidian Bank’s history came in 2014 when Centum Investment Company, a prominent Kenyan investment firm, acquired a controlling stake from the K-Rep Group.
This acquisition was finalized in 2015, marking the beginning of a new era for the bank.
On April 4, 2016, K-Rep Bank rebranded to Sidian Bank—a name derived from “obsidian,” symbolizing strength and resilience—to reflect Centum’s majority ownership through its subsidiary, Bakii Holdco Limited.
By 2019, Bakii Holdco, a non-operating holding company wholly owned by Centum, held approximately 80.19% of the bank’s shares, cementing Centum’s dominance.
During this period, the bank attracted additional investments, including a Ksh 1.2 billion loan from the Investment Fund for Developing Countries (IFU) in March 2019.
This loan came with an option for IFU to convert part or all of the principal into a 20% equity stake within 36 months, potentially diluting other shareholders proportionally.
While Centum’s influence grew, the K-Rep Group and other minority shareholders, such as KWA Multi-Purpose Co-operative Society, retained smaller stakes.
Strategic divestitures and new players
Centum’s tenure as the majority shareholder saw significant developments, but by 2022, the company began reducing its stake in Sidian Bank.
In June 2022, media reports highlighted a potential blockbuster deal – Nigeria’s Access Bank Group agreed to acquire Centum’s 83.4% stake for Ksh 4.3 billion.
The plan was to merge Sidian Bank with Access Bank Kenya, where Access Bank already held a 99.98% shareholding, pending regulatory approval from both Kenyan and Nigerian authorities.
Though this deal promised to reshape Sidian’s future, it faced delays, and Centum continued to adjust its holdings.
By late 2023, a new shift emerged. The K-Rep Group, along with KWA Multi-Purpose Co-operative and several individual shareholders, sold their combined 16.57% stake—728,525 shares—for Keh 841.66 million.
The buyers were a consortium of Kenyan corporate entities led by Pioneer General Insurance, including Pioneer Life Investments, Wizpro Enterprises, Afrah Limited and Telesec Africa.
This transaction ended the K-Rep Group’s historical ownership, which had once accounted for an 11.4% share valued at approximately Ksh 579.3 million.
Meanwhile, Centum offloaded a 38.91% stake to the same consortium in October 2023, reducing its ownership further.
In 2024, Centum continued its divestment strategy, announcing plans to sell an additional 18.9% stake for KSh 1.03 billion, bringing its ownership down to 15.2% by September.
This marked the fourth sale in under a year, reflecting a deliberate retreat from its peak 83.4% ownership at the end of 2022.
The valuation of Sidian Bank during these transactions hovered around Ksh 5.08 billion, based on Centum’s carrying value as of March 31, 2023.
Current ownership
Sidian Bank’s ownership is a blend of institutional investors, with the Pioneer-led consortium emerging as a dominant force following their 2023 acquisitions.
Centum, through Bakii Holdco, retains a minority stake, while the potential for IFU to convert its loan into equity lingers as a wildcard.
The stalled Access Bank deal remains in limbo, subject to regulatory hurdles, leaving room for speculation about the bank’s ultimate direction.
Notably, public sentiment has fueled additional intrigue with some alleging connections to prominent Kenyan figures, including claims of indirect ownership by President William Ruto or links to individuals like Adil Khawaja, Safaricom’s chairman, and Jayesh Saini.
However, it is important to note that these claims lack substantiated evidence and remain speculative.
